Tompkins Financial(US:TMP)2024-05-08 17:18Financial Performance - Net income attributable to Tompkins Financial Corporation for the three months ended March 31, 2024, was $16,872 thousand, down 13.0% from $19,381 thousand for the same period in 2023[14]. - Basic earnings per share decreased to $1.19 for Q1 2024, down from $1.35 in Q1 2023, a decline of 11.9%[14]. - Total comprehensive income for the first quarter of 2024 was $7,092,000, significantly lower than $40,255,000 reported in the first quarter of 2023[23]. - Net income available to common shareholders for Q1 2024 was $16,872,000, down from $19,381,000 in Q1 2023, a reduction of about 7.76%[82]. - Return on average assets (ROA) for Q1 2024 was 0.87%, compared to 1.03% in Q1 2023; return on average shareholders' equity (ROE) was 10.18%, down from 12.45% in the same period[168]. Income and Revenue - Total interest and dividend income increased to $83,183 thousand for Q1 2024, a rise of 19.9% compared to $69,238 thousand in Q1 2023[14]. - Noninterest income rose to $22,137 thousand in Q1 2024, up 8.5% from $20,400 thousand in Q1 2023[14]. - The total noninterest income for the three months ended March 31, 2024, was $22,137,000, an increase from $20,400,000 in the same period of 2023, representing a growth of approximately 8.5%[99]. - Commissions and fees from insurance revenues increased to $10,259,000 for the three months ended March 31, 2024, compared to $9,509,000 in 2023, reflecting a rise of 7.9%[99]. - Trust and asset management income rose to $4,468,000 for the three months ended March 31, 2024, up from $3,435,000 in 2023, indicating a growth of 30.1%[99]. Expenses - Total noninterest expenses slightly decreased to $49,857 thousand in Q1 2024 from $50,158 thousand in Q1 2023, a reduction of 0.6%[14]. - Noninterest expenses decreased by $485,000 or 1.2% to $39.4 million in Q1 2024, with reductions in salary and employee benefits[174]. - The net periodic benefit cost for pension benefits was reported as a cost of $141,000 for the three months ended March 31, 2024, compared to a cost of $72,000 in 2023[88]. - The marketing expense for the three months ended March 31, 2024, was $975,000, a decrease from $1,105,000 in the same period of 2023[91]. Assets and Liabilities - Total assets decreased to $7,778,034 thousand as of March 31, 2024, from $7,819,749 thousand as of December 31, 2023, representing a decline of 0.5%[12]. - Total deposits increased to $6,449,616 thousand as of March 31, 2024, compared to $6,399,847 thousand as of December 31, 2023, reflecting a growth of 0.8%[12]. - The total available-for-sale debt securities as of March 31, 2024, amounted to $1,366,355,000, down from $1,416,650,000 at December 31, 2023[37]. - The fair value of available-for-sale debt securities as of March 31, 2024, was $1.366 billion, a decrease from $1.416 billion at December 31, 2023[115]. - The fair value of held-to-maturity debt securities totaled $265,102,000 as of March 31, 2024, compared to $312,415,000 at the end of the previous quarter[38]. Loans and Credit Quality - Total loans and leases increased to $5,645,359,000 as of March 31, 2024, up from $5,610,929,000 on December 31, 2023, representing a growth of approximately 0.6%[52]. - Nonaccrual loans totaled $41,905,000 as of March 31, 2024, with no related allowance for credit losses, indicating a focus on managing credit risk[57]. - The allowance for credit losses on loans and leases increased to $51,704,000 as of March 31, 2024, from $51,584,000 at the beginning of the period, reflecting a net increase of $120,000[69]. - The provision for credit loss expense for the three months ended March 31, 2024, was $348,000, compared to a provision expense of $(1,180,000) for the same period in 2023, indicating a significant improvement[70]. - The company recognized $0 of interest income on nonaccrual loans during the three months ended March 31, 2024, highlighting potential challenges in loan recoverability[59]. Market and Regulatory Information - Tompkins Financial Corporation's common stock is traded on the NYSE American under the symbol "TMP" and is regulated under the Bank Holding Company Act[25]. - The company adopted ASU 2023-02, which allows for consistent accounting for equity investments made primarily for tax credits, effective for fiscal years beginning after December 15, 2023[31]. - The company expects average assets to exceed $8.0 billion for the 2024 tax year, impacting tax benefits eligibility[202]. Strategic Initiatives - The Company is focused on responsible and sustainable growth, including potential acquisitions of financial institutions and branches to enhance its market presence[149]. - Tompkins Community Bank operates 55 banking offices, with 39 in New York and 16 in Pennsylvania, providing a range of commercial and consumer banking services[150]. - The Company aims to enhance its wealth management services through Tompkins Financial Advisors, which offers investment management and financial planning[151]. - Tompkins Insurance has successfully consolidated smaller insurance agencies into its operations, expanding its service offerings in the market areas served by the banking subsidiaries[152].